Value Creation

To create value for our stakeholders over time, we need to be sustainable and profitable. To do this we have to not only follow government regulations for fishing, but also communicate with other fishing businesses and set our own limits to ensure that we are fishing sustainably and able to make a profit. Below are three scenarios with figures to show how our business performed when we tried to fish for a season without regulations, a season while upholding government regulations and a third season where we uphold our own regulations and how this affects future sustainability of the company and our profits.

BUSINESS AS USUAL (FIRST FISHING SEASON)

In our first fishing season, there was no government or self regulation. This resulted in us making a huge loss and jeopardizing our companies future, as we will not be able to catch fish if we have over fished and there is no more fish to catch. Our goal was simply to make as much profit as possible by catching as much fish as possible, buying more and more boats to catch more fish, and when the fish ran out, we had no source of income and we had expenses to cover for the boats we owned and people that we employed. In the following seasons, we implemented Government regulations and after that, self regulations that will ensure a sustainable future for our company.

GOVERNMENT REGULATIONS (SECOND FISHING SEASON)

In our second season we followed and upheld government regulations, this means that we are allowed to catch less fish, to ensure that the population of fish is able to recover before the next season starts. As a result we bought less boats, had less expenses and there was a more steady stream of income. This however still resulted to a degree of over fishing and as a result, our income declined as we neared the end of the season. We still made a loss and this is possible since other companies might not have upheld the government’s regulations, which still resulted in over fishing. But when compared to the first fishing season, we made less of a loss and shows that this is much more sustainable when compared to fishing with no regulations, and it is more profitable to the company.

SELF-REGULATION (THIRD FISHING SEASON)

In this season we had a positive bank balance and we actually made a profit instead of a loss. When collaborating with other businesses to set our own regulations and upholding it to ensure that there is enough fish to recover, we bought even less boats, had less expenses, but had a stream of income that did not decline. This is profitable, sustainable and by doing this, this is how we are going to create value over time for our stakeholders.